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10 Step Marketing Plan
  for Hewlett-Packard
 (Enterprise Services)


        Sarah Cate
     Emmanuel Junio
      Paul Maravillas
       March 2013
Disclaimer
This 10 Step Marketing Plan is part of the mandatory
  requirements of Prof. Remigio Joseph De Ungria’s
  AGSB marketing management class.
The data included in this report are based on publicly
  available data such as those on internet websites,
  news, package declarations, public reports.
When appropriate, data are “masked” so as not to
  create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
  and facebook so that there is easier sharing among
  students from different marketing classes.
Steps 1 to 5
Summary headline of your
PTM and market
1.   Small, Medium and Large Corporate
     Enterprise businesses
2.   Customers want the best high-quality IT
     solution and services to optimize business
3.   Competing 3rd Party IT Service Providers
     (IBM and Fujitsu) or In-house support
4.   Gap is all other IT vendors offer the similar
     services at cheaper price
5.   $184B USD. HP niche is $34.678B
Steps 6 to 10

Summary headline of the
marketing mix & strategy
6.    IT Enterprise Services
7.    HP price is more often higher than
      competitor price
8.    All promo methods (ads, media,
      entertainment, commercials, multi-media,
      experiences, etc)
9.    Global (AMS, EMEA, APJ)
10.   Differentiation as the Generic Winning
      Strategy
1. Primary Target Market

   Corporate Businesses
    - Small, Medium, Large Enterprises
   Government or Private Businesses engaged in IT
    technology and IT services
   Onsite and Remote (Virtual) Management IT Services
   IT Services for ALL industries (Consumer and Retail,
    Energy, Financial Services, Healthcare,
    Transportation, Manufacturing, Communications,
    Media and Entertainment, Government, etc)
2. Customers’ Needs,
Wants and Demands

Enterprise Customers choose HP for the best IT
  solution and services
Enterprise Customers:
 Need to run the business the most efficient

  and effective way possible
 Want to be secure, patronized by the end-

  users/clients
 Demand/expect the Best service (with value

  added end-to-end service) for the price
2. Enterprise Customers’
            needs, wants and demands
                                                      Self-Actualization
       Enterprise Customers need                            Needs
        to go beyond the basics                      (Self-Development
                                                       & Realization)


       Enterprise Customers need                     Esteem Needs
        Recognition, Awards, etc                     (Recognition,
                                                        Status)


       Enterprise Customers needs
                                                     Social Needs
acceptance from End-users/End-Customers



     Enterprise Customers needs
          business security               Safety Needs (security, protection)




                                                  Physiological needs


                                           Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

                                                                                                                          7
3a. HP and its competitors
3a. Variables affecting
Competition
   Price (more expensive than competitor price)
       Total Contract Value Diamond (>=$500M), Platinum
        (>=$150M and <= $500M), Gold (>=$50M and <$150M),
        Bronze (<$50M)
   Capability Offerings (What HP can do)
   End-to-end Service Offerings (plus value add)
   Service Window (24x7, 8x5, Follow-the-Sun, etc)
   Service Level
        Platinum (99.9995%), Gold (<=99.99%), Silver (<=99%),
        Bronze (<=98%)
   Exclusivity of service (Leveraged/Dedicated)
3b. Positioning Maps
  #    Company

  1    IBM                    #   Country           Companies
  2    HP
  3    Fujitsu                1    United States     53
  4    CSC
  5    Accenture              2    United Kingdom    7
  6    Capgemini              3    Japan             6
  7    Hitachi                4
  8    Ericsson                    France            5
  9    NTT Data Corporation   5    India             5
  10   NEC                    6    China             5
  11   BT Global Services
                              7    Other             19
  12   T-Systems
  13   Lockheed Martin
  14   SAIC
  15   Atos Origin
  16   Huawei
  17   Siemens
  18   ACS
  19   Microsoft
  20   Digital China
3b. Positioning Maps
(Price/Size Matrix)

Price/Size   Small   Medium   Large




High price



Low Price
4. HP positions strongly in a
Differentiation market opportunity

HP is the only IT company:
 which ranks in the top 10 in Fortune 500

 which offers end-to-end IT solution (hardware,

  software, services, etc) to small, medium, large
  enterprise business; private, or government
  institutions
 has strong global presence across the globe

 that pioneered Green revolution (eco-friendly IT

  solution)
5a. Market share
The world's leading companies in IT services are IBM, HP and Fujitsu.
With services revenues of US$ 37.3 billion, IBM remains the largest IT services
     company in the world.
HP (2) however, almost closed the revenue gap with IBM, after taking over EDS in
     2008: HP now posted services revenues of US$ 34.7 billion.
Fujitsu and CSC held on to positions 3 and 4 on the list, respectively, followed by
     consultants Accenture (5) and Capgemini (6). Ericsson (8) boosted services
     revenues in 2009, entering the top 10 as a result, while Hitachi (7) had a more
     difficult year (–10%).
All of the top 10 companies brought in more than 10 billion USD, and 93 of 100
     companies in the Services Top 100 posted revenues above 1 billion in 2009.
Together, the Top 100 saw their revenues creep up 1.7% to US$ 453 billion.
     Protected by long-running outsourcing contracts, most firms did not suffer any
     material declines during the economic crisis. Probably, the industry will return
   to double-digit growth rates when the economy gains traction.
5b. Market Size

                                                           Services Revenue
                            #   Company
                                                                      US$ M

                           1    IBM                                  37,347
                           2    HP                                   34,678
                           3    Fujitsu                              26,935
                           4    CSC                                  16,281
                           5    Accenture                            15,555
                           6    Capgemini                            11,255
                           7    Hitachi                              11,050
                           8    Ericsson                             11,031
                           9    NTT Data Corporation                 10,425
                           10   NEC                                   9,555
                           11   BT Global Services                    9,237
                           12   T-Systems                             8,744
                           13   Lockheed Martin                       8,087
                           14   SAIC                                  7,547
                           15   Atos Origin                           7,386
                           16   Huawei                                7,277
                           17   Siemens                               6,949
                           18   ACS                                   6,700
                           19   Microsoft                             6,265
                           20   Digital China                         6,218


Source: http://www.servicestop100.org/services-top-100-the-worlds-largest-it-services-companies-2010.php
6a. HP Products and Services
6b. Product Description

HP offers:
 the state-of-the-art technology

 the best high quality products and
  services
7. Price

   HP’s price is 20-30% higher than
    competitor products and services
   But is almost at par with IBM price
8a. HP uses all
promotional methods
8a. HP Marketing
9. HP is located everywhere

   Globally available
   AMS, EMEA, APJ
   Onshore, Nearshore, BestShore
   Local or overseas
   Virtually, Remotely or Physically
    available
10. HP Winning strategy?

  HP’s strategy is to dominate the IT
   Enterprise niche market and to continue to
   become the number one (1) IT industry in
   the whole world
  HP has excellent products and services
   available globally with proven track record
   through the ages
Summary
Steps 1 to 5
Summary headline of your
PTM and market
1.   Small, Medium and Large Corporate
     Enterprise businesses
2.   Customers want the best high-quality IT
     solution and services to optimize business
3.   Competing 3rd Party IT Service Providers
     (IBM and Fujitsu) or In-house support
4.   Gap is all other IT vendors offer the similar
     services at cheaper price
5.   $184B USD. HP niche is $34.678B
Steps 6 to 10

Summary headline of the
marketing mix & strategy
6.    IT Enterprise Services
7.    HP price is more often higher than
      competitor price
8.    All promo methods (ads, media,
      entertainment, commercials, multi-media,
      experiences, etc)
9.    Global (AMS, EMEA, APJ)
10.   Differentiation as the Generic Winning
      Strategy
10 Step Marketing Plan
  for Hewlett-Packard
 (Enterprise Services)


        Sarah Cate
     Emmanuel Junio
      Paul Maravillas
       March 2013

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MM Marketing - 10-Step Marketing Plan - by 3Musketeers

  • 1. 10 Step Marketing Plan for Hewlett-Packard (Enterprise Services) Sarah Cate Emmanuel Junio Paul Maravillas March 2013
  • 2. Disclaimer This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class. The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports. When appropriate, data are “masked” so as not to create unexpected conflicts. The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.
  • 3. Steps 1 to 5 Summary headline of your PTM and market 1. Small, Medium and Large Corporate Enterprise businesses 2. Customers want the best high-quality IT solution and services to optimize business 3. Competing 3rd Party IT Service Providers (IBM and Fujitsu) or In-house support 4. Gap is all other IT vendors offer the similar services at cheaper price 5. $184B USD. HP niche is $34.678B
  • 4. Steps 6 to 10 Summary headline of the marketing mix & strategy 6. IT Enterprise Services 7. HP price is more often higher than competitor price 8. All promo methods (ads, media, entertainment, commercials, multi-media, experiences, etc) 9. Global (AMS, EMEA, APJ) 10. Differentiation as the Generic Winning Strategy
  • 5. 1. Primary Target Market  Corporate Businesses - Small, Medium, Large Enterprises  Government or Private Businesses engaged in IT technology and IT services  Onsite and Remote (Virtual) Management IT Services  IT Services for ALL industries (Consumer and Retail, Energy, Financial Services, Healthcare, Transportation, Manufacturing, Communications, Media and Entertainment, Government, etc)
  • 6. 2. Customers’ Needs, Wants and Demands Enterprise Customers choose HP for the best IT solution and services Enterprise Customers:  Need to run the business the most efficient and effective way possible  Want to be secure, patronized by the end- users/clients  Demand/expect the Best service (with value added end-to-end service) for the price
  • 7. 2. Enterprise Customers’ needs, wants and demands Self-Actualization Enterprise Customers need Needs to go beyond the basics (Self-Development & Realization) Enterprise Customers need Esteem Needs Recognition, Awards, etc (Recognition, Status) Enterprise Customers needs Social Needs acceptance from End-users/End-Customers Enterprise Customers needs business security Safety Needs (security, protection) Physiological needs Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler 7
  • 8. 3a. HP and its competitors
  • 9. 3a. Variables affecting Competition  Price (more expensive than competitor price)  Total Contract Value Diamond (>=$500M), Platinum (>=$150M and <= $500M), Gold (>=$50M and <$150M), Bronze (<$50M)  Capability Offerings (What HP can do)  End-to-end Service Offerings (plus value add)  Service Window (24x7, 8x5, Follow-the-Sun, etc)  Service Level  Platinum (99.9995%), Gold (<=99.99%), Silver (<=99%), Bronze (<=98%)  Exclusivity of service (Leveraged/Dedicated)
  • 10. 3b. Positioning Maps # Company 1 IBM # Country Companies 2 HP 3 Fujitsu 1 United States 53 4 CSC 5 Accenture 2 United Kingdom 7 6 Capgemini 3 Japan 6 7 Hitachi 4 8 Ericsson France 5 9 NTT Data Corporation 5 India 5 10 NEC 6 China 5 11 BT Global Services 7 Other 19 12 T-Systems 13 Lockheed Martin 14 SAIC 15 Atos Origin 16 Huawei 17 Siemens 18 ACS 19 Microsoft 20 Digital China
  • 11. 3b. Positioning Maps (Price/Size Matrix) Price/Size Small Medium Large High price Low Price
  • 12. 4. HP positions strongly in a Differentiation market opportunity HP is the only IT company:  which ranks in the top 10 in Fortune 500  which offers end-to-end IT solution (hardware, software, services, etc) to small, medium, large enterprise business; private, or government institutions  has strong global presence across the globe  that pioneered Green revolution (eco-friendly IT solution)
  • 13. 5a. Market share The world's leading companies in IT services are IBM, HP and Fujitsu. With services revenues of US$ 37.3 billion, IBM remains the largest IT services company in the world. HP (2) however, almost closed the revenue gap with IBM, after taking over EDS in 2008: HP now posted services revenues of US$ 34.7 billion. Fujitsu and CSC held on to positions 3 and 4 on the list, respectively, followed by consultants Accenture (5) and Capgemini (6). Ericsson (8) boosted services revenues in 2009, entering the top 10 as a result, while Hitachi (7) had a more difficult year (–10%). All of the top 10 companies brought in more than 10 billion USD, and 93 of 100 companies in the Services Top 100 posted revenues above 1 billion in 2009. Together, the Top 100 saw their revenues creep up 1.7% to US$ 453 billion. Protected by long-running outsourcing contracts, most firms did not suffer any material declines during the economic crisis. Probably, the industry will return to double-digit growth rates when the economy gains traction.
  • 14. 5b. Market Size Services Revenue # Company US$ M 1 IBM 37,347 2 HP 34,678 3 Fujitsu 26,935 4 CSC 16,281 5 Accenture 15,555 6 Capgemini 11,255 7 Hitachi 11,050 8 Ericsson 11,031 9 NTT Data Corporation 10,425 10 NEC 9,555 11 BT Global Services 9,237 12 T-Systems 8,744 13 Lockheed Martin 8,087 14 SAIC 7,547 15 Atos Origin 7,386 16 Huawei 7,277 17 Siemens 6,949 18 ACS 6,700 19 Microsoft 6,265 20 Digital China 6,218 Source: http://www.servicestop100.org/services-top-100-the-worlds-largest-it-services-companies-2010.php
  • 15. 6a. HP Products and Services
  • 16. 6b. Product Description HP offers:  the state-of-the-art technology  the best high quality products and services
  • 17. 7. Price  HP’s price is 20-30% higher than competitor products and services  But is almost at par with IBM price
  • 18. 8a. HP uses all promotional methods
  • 20. 9. HP is located everywhere  Globally available  AMS, EMEA, APJ  Onshore, Nearshore, BestShore  Local or overseas  Virtually, Remotely or Physically available
  • 21. 10. HP Winning strategy? HP’s strategy is to dominate the IT Enterprise niche market and to continue to become the number one (1) IT industry in the whole world HP has excellent products and services available globally with proven track record through the ages
  • 23. Steps 1 to 5 Summary headline of your PTM and market 1. Small, Medium and Large Corporate Enterprise businesses 2. Customers want the best high-quality IT solution and services to optimize business 3. Competing 3rd Party IT Service Providers (IBM and Fujitsu) or In-house support 4. Gap is all other IT vendors offer the similar services at cheaper price 5. $184B USD. HP niche is $34.678B
  • 24. Steps 6 to 10 Summary headline of the marketing mix & strategy 6. IT Enterprise Services 7. HP price is more often higher than competitor price 8. All promo methods (ads, media, entertainment, commercials, multi-media, experiences, etc) 9. Global (AMS, EMEA, APJ) 10. Differentiation as the Generic Winning Strategy
  • 25. 10 Step Marketing Plan for Hewlett-Packard (Enterprise Services) Sarah Cate Emmanuel Junio Paul Maravillas March 2013